A vehicle is bigger, more expensive and more complicated than most other consumer goods you buy, so it is not surprising that you need to do some research to help you make an informed choice. In this section, you will find some tips to help you get your research started. Laws relating to motor vehicles vary between states and territories, so you should also do some research with the vehicle registration authority in your state or territory.
Before you go shopping, learn all you can about the vehicle you are thinking of buying so you can make an informed choice.
For new or recent models, look out for car reviews in motoring magazines and the motoring section in most newspapers. Motor clubs (such as the NRMA, RACV, RACT, RAA, and RACQ) usually have up-to-date information on most cars. These resources will give you a good idea of the performance and features of a particular model, problems to be aware of, and what you can expect to pay.
You should also do some careful research on the safety features of any vehicle you are considering. A really good place to begin your research is the website of the Australasian New Car Assessment Program (ANCAP) at www.ancap.com.au. ANCAP gives you consistent information on the level of occupant protection provided by vehicles in serious front and side crashes. This information is provided as a star rating out of five to help you make comparisons. The ANCAP is supported by all Australian and New Zealand automobile clubs, all state governments in Australia, the New Zealand Government, and IAG Ltd.
Decide your budget (and stick to it)
A vehicle's advertised price is only one part of what you have to pay to get it on the road. Extra costs could include:
'on-road costs', such as registration, compulsory third-party insurance and state duties
insurance
servicing, maintenance and spare parts—parts for imported cars, even some cheaper models, can be very expensive.
If you are intending to get a loan to help you pay for your vehicle, make sure you include interest repayments in your budget. Just as you shop around for the right vehicle, you should also shop around for the finance plan that best suits your circumstances.
Examine the vehicle
Once you find a potential vehicle, check what condition it is in and how it performs.
Inspect the car—check the body, the interior and under the bonnet. Look for obvious problems such as oil leaks or other spills, rust, wear or damage.
If you do not feel confident about your ability to inspect a car, arrange an inspection by an independent mechanic or through your motor club.
Ask to see the service history—this is like the car's 'medical history'. A complete, well-kept logbook may be a good sign that the car has been looked after.
Take it for a test drive—check its power, braking and handling. Listen for unusual noises.
Buying a vehicle through a dealership
You should check with the registration authority or office of fair trading in your state or territory about the rules and safeguards that apply to vehicles bought through a dealership in your jurisdiction. Here are some general things to keep in mind.
New cars bought through a dealership
There are laws that dealers Australia-wide must abide by. Buying from a dealer gives you protection under these laws. You also get all the benefits of a full dealer warranty, and the security of knowing where you can take the car if you do have a problem.
Used cars bought through a dealer
Used cars sold by dealers have different warranties that can vary depending on the price of the vehicle, and law in that state. For instance, some states require that dealers offer a warranty, and guarantee the car is not stolen or has an outstanding debt.
Dealing with dealers
Do not be baffled by jargon or an impressive sales pitch, and do not be rushed into making a decision. Take time to shop around and compare what different dealers can offer you. If you do not know much about cars, ask your mechanic or a friend to help you. You motor club could also be a useful source of information.
Think about your choices and ask yourself whether you really need 'extras' that may be offered, and whether you want to add the cost of an extended warranty to the price of the car.
Private sales
Buying privately can be an excellent way to get the car you want. Like dealership sales, the rules for private sales vary between states and territories, so check with your local registration authority about what you need to do, and fees you need to pay.
Because there are no warranties on a private sale, it is your responsibility to make sure that the car is safe to drive and mechanically sound before you buy it.
If you are not confident, seek the advice of an expert, such as your motor club, before going any further with the sale.
Is there a debt on the vehicle? Do not buy without checking the Register of Encumbered Vehicles
Before you make purchase a used car, you should always check the Register of Encumbered Vehicles (REVs) in the state or territory where the vehicle is registered to confirm whether there is an outstanding debt on the vehicle.
When a bank or other financial institution provides a loan to a purchaser of a vehicle, an 'encumbrance' is recorded. By doing a REVs check, you can confirm whether the vehicle is clear of any encumbrances (i.e. unpaid debts). A clear REVs certificate on the day that you are purchasing a used vehicle protects you from repossession due to a previous owner's unpaid debt.
To do a REV check, you may need to supply the following vehicle identifiers:
registration number
registration state
engine number
VIN/chassis numbers
Your local office of fair trading or consumer affairs agency help you organise a REVs check in your state or territory. (If you a purchasing a car which is registered interstate, contact the agency in that state, not your own).
You should obtain the certificate on the day you intend to purchase the vehicle, as they are normally only valid for one day.
Does the person selling the car actually own it? Do not buy without confirming the registration details
If possible, inspect the vehicle yourself (or ask someone else to do it for you) and record the vehicle identifiers (see list above). Confirm whether the identifiers on the vehicle match those on the registration papers. You should then confirm these details with the vehicle registration authority in the state or territory where the vehicle is registered.
Buying at auction
As with a private sale, there is no warranty on any car that you buy at an auction. And while the auction house must allow you a reasonable inspection of the car, they may not allow you to test drive the car.
For these reasons, it is very important that you check the car and the paperwork thoroughly.
The auction house must give you a safety check report—less than one month old, unless the car has been registered within the past month and confirm that there is no money owing on the car.
Your local consumer protection agency or registration authority can help explain the details of the other important things you need to know before you buy from a private seller or at auction.
Paying for your car
Because cars are expensive, you may need to take out a loan through a bank or finance agency. If you want to pay for your car in this way, you need to consider the interest rate, and whether you can afford the repayment amount. Do not borrow more than you can afford to repay.
You should research your financing options before you choose your car. While finance arranged by the dealer may be very convenient, it may not be the best arrangement for you. Check with your bank and other credit providers and compare what they can offer you.
State and territories also have individual laws covering contracts, and it is worth contacting your local fair trading office to find out what these are in your area. For example, some states allow you to cancel a contract under certain circumstances.
If you have a problem after sale
As with any goods you buy, if you have a problem with your car you should first try to resolve your concerns with the trader. Document your problems and what steps you have taken to get them fixed.
If you are not able to negotiate a satisfactory outcome with the seller, try contacting the customer service department at the manufacturer/distributor of the car.
You could also consider contacting an industry body, such as the motor trades association in your state, or from you motor club. Many motor clubs offer legal services, including advice, on these matters to their members.
